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THE SIGNIFICANCE OF DISTRIBUTION IN THE MARKETING OF CONSUMER GOODS

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The physical transfer of merchandise or goods is traceable to the most primitive people the field of physical distribution did not gain access general acceptance until complex operation system become necessary for business management or administration. Although the process of physical distribution is as old as organized trade, the scientific system of integrated physical distribution system emerged only in the past few decades. 

In a free society, management has large latitude in selecting system of distribution. One firm may select a system to provide all customer with a safely delivery. Another firm, in the same industry, may also decide that delivery within a shortest possible time of order receipt is sufficient to maintain market position.

The determination of how much service to provide to customers which is a central issue in physical distribution planning is important. Service cost money and all firms wish to save money, but without adequate customer service they may be little or no sale, little or no profit and off course little or no survival.

1.2       STATEMENT OF PROBLEM

The problem to the examined is the problem associated with the channel of distribution and their impact on the company sales turn over.

          When distribution problem arise, the route or path which goods and services flow are blocked. This gives the marketer much concern and to find out among other item the probability causes of the problem and their immediate solution.

          Lack of selective distribution may arise as a result of low sales and low profit by companies. This project report is therefore aimed at showing the way in which a company can pattern it’s distribution channel in other to overcome low sales and at the same time obtain high profit.

1.3    RESEARCH QUESTIONS

a)          Does the present distribution of the company and with a view to determine it level of efficiency?

b)         What is the level of service provide by the company and the customers experience, any inconvenience in achieving the product in obtaining the product?

c)          Does the company provide enough warehousing facilities to meet it production capacity?

d)         Is there are enough value to the supply of the product to the company distribution outlet?

1.4       OBJECTIVE OF STUDY

          The ultimate objective of this research report is

a)    To study the present distribution of the company and with a view to determine it level of efficiency.

b)   To find out the level of service provide by the company and the customers experience, any inconvenience in achieving the product in obtaining the product.

c)    To find out whether the company provide enough warehousing facilities to meet it production capacity.

d)   To determine if there are enough value to the supply of the product to the company distribution outlet.

1.5       STATEMENT OF HYPOTHESIS

Hypothesis One

Ho:Distribution does not add value to product

Hi: Distribution adds value to a product.

Hypothesis Two

Ho: The efficiency of distribution is not determined by the  cost involve in distributing product.

Hi: The method of selecting channel members is important.

1.6       SIGNIFICANCE OF THE STUDY

It is believe that the study will be of a great and tremendous important and of advantage to future researchers and authors. This research report will help them in carrying out further research.

          Also, the researchers will equally benefit maximally from the research in the sense that study will afford the researcher the opportunity of having more knowledge in marketing, be because there have been conflicting chain.

          The study is also relevant to the government, it will continues to increase in profit of the company as a result of efficient distribution systems, adapt or employed may lead to expansion, thereby creating job opportunity for the unemployment sector in the country. Equally the high standard of living of the staff of unilever Nigerian plc resulting from efficient distribution system will help to improve the situation of the country.

          Finally, this research work is very significant because it fulfills one of the requirements for the higher national diploma (HND) certificate in department of marketing source to other researchers.

1.7       SCOPE OF STUDY

This research report tends to review and examine Omo product of unilever Nigeria plc entire channel of distribution and the various types of distribution channel. This research report will also review the advantages or merit and demerit of distribution channels. It will also determine level of efficiency of the present distribution system of the company.

          The scope of this study is limited to Omo product of unilever Nigeria plc as sample representing other companies.

1.8       LIMITATIONS OF STUDY

There are number of outstanding problem which the researcher will encounter during the research, these impediment include the following:

1.           A limiting factor of this research work especially with the researcher gained freedom. In other word, the freedom of data collecting concerned the research was over marginalized under this circumstance

2.           Time factor is worth of mention is a serious limitation to this worker research. The volume brackets requirement of this research taken Higher National Diploma (HND). Class poses limitation of inevitable cost to the researcher. More over, the timed limit on estimation for the submission of the research work, unaccommodating posture of the management of industrial organization in Nigeria is releasing required data are serious limitation to the effort of the researcher and necessary  limitation  in scope of an area and periods when data are fairly available.

3.           Another limiting factor was financial constraints as the collection of data required lot of traveling which is expensive with increasing cost of transportation. But in spite of this constraint, the work has been exciting and the researcher is confident that the result of this work will be useful to the marketer and policy workers.

1.9       OPERATIONAL DEFINITION OF TERMS

Distribution: distribution is conceded with marketing institution and practices involved in the ultimate industrial users.

Physical distribution:’ this is a set of tasks involved in planning and implementing the physical flows of material and final goods from point of origin to point of use or consumption to meet he needs of customer a  profit.

Marketing: is human activities directed at satisfying needs and want through exchange process.

Channel of distribution: these are all the organization and individual that take little or assist in transferring title to the particular goods and service at it moves from producer to the consumers.

Bucking (1966) define channel distribution as a  set of institution which perform all activities used to moves a product and it’s title from point of production to a point of consumption.

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